Financial Aid - Federal Direct Loans

Carroll participates in the William D. Ford Federal Direct Loan Program. The program allows students and parents to borrow funds at low interest rates to pay for education expenses. 

Students must complete a Free Application for Federal Student Aid (FAFSA) to show financial need.  

The U.S. Department of Education lends the money directly to eligible students and parents through the student’s school. 



  • Low interest rates - the annual percentage rate will not suddenly spike due to sudden economic changes.
  • Funds are guaranteed to be available from the U.S. Treasury.
  • One master promissory note, good for 10 years - may be complete online.
  • Repayment starts six months after graduation or when student status drops below half-time enrollment.
  • Flexible repayment plans.
  • Online student account access.


Loan Types

Direct Loans are applied for by completing the FAFSA. Direct loans include Subsidized, Unsubsidized and PLUS loans, and they are eligible to be used for loan consolidation.

  • Subsidized Loans - for students who demonstrate financial need, based on their FAFSA. No interest is charged while the student is enrolled in school as long as he/she maintains at least a half-time status. These loans remain interest free during deferment and grace periods.
    During a deferment period, the student is not required to make loan payments. This could be while he/she is still enrolled, before graduating.
    Grace period is the span of six months after a student graduates, before he/she is required to start making loan payments.
  • Unsubsidized Loans - these loans not based on financial need, and charge interest during all periods, including the time when the student is in school.
  • PLUS Loans - unsubsidized loans borrowed by the the parent or legal guardian for dependent students, including those who are graduate students. PLUS loans charge interest during all periods.


Helpful Resources

View  the following and more information at


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